Indian Paper Industry - Overview

The Indian Paper Industry accounts for about 2.6% of the world's production and is positive over the coming years. The growth is expected to be driven by the rising demand for paper products, which is majorly supported by various government education programmes. India?s per capita consumption of paper is just around 5 kg, one of the lowest in t

he world whereas for USA, it is around 320 kg and 30 kg in China. It is said, an increase of 1 kg in per capita consumption will lead to a demand of 1 million tonnes of p

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Indian Paper Industry now imports wood fibre from overseas

India Paper industry is finding shortage of wood pulp with domestic production is not meeting the increased demand. The industry has resorted to import wood fibre, chips and logs from overseas despite several difficulties. Over the next five years, demand for paper is expected to increase by between 2-12% annually, depending on paper grade. Over the past decade, the domestic pulp industry has steadily increased its usage of pulpwood because of higher pulp production, less usage of bamboo and because several pulp mills switched from recycled fiber to wood fiber. The share of imported wood fiber for the pulp industry accounted for almost ten percent of total consumption of wood fiber in 2014, and this share is expected to increase in the coming years. Importation of chips is fairly new and

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Paper industry reeling under increased imports

Indian Paper Industry has invested Rs. 25,000 crore over the last decade in modernization and capacity expansion programme. They have expected India to be the fastest growing paper market with growth rate of 5-6%. However, the fastest growth rate has attracted competition especially from China and other south east Asian countries which resulted in high imports, which have been growing at a compounded rate of 21% over the last 5 years. Imports from Asean market enjoy basic customs duty on paper is nil under the Indo-Asean Free Trade Agreement. Apart from imports, Indian paper industry is also facing challenges in rising raw material costs, where mill-delivered wood costs $175-200 a tonne in India against an average of $100 a tonne in other Asian countries. To overcome the above, the ind

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